Farmer sales of corn and soyabeans continued at a trickle because of low cash prices, but were enough to satisfy processor appetites and export demand, dealers said.
"If we can keep (the basis) low, obviously we're going to do that for as long as we can," said an Indiana dealer. "But I think we'll continue to improve over the next couple of weeks."
Farmers were looking for cash soyabean prices to hit $6 to $6.25 per bushel and corn prices to get above $2. Processors were paying from $5.40 to $5.78 for soyabeans, with country elevators offering less. Corn processors and terminals were paying between $1.52 and $1.85 for corn.
Barge freight fell on Monday, but the barge market was quiet with almost no trades, industry sources said.
Barge freight bids on the Mississippi River at St. Louis fell 15 percentage points of tariff on Monday to 275 percent. Bids on the Illinois river were unchanged at 350 percent and bids on the lower Ohio River were steady at 400 percent.
Low water was still a problem on the Mississippi River south of St. Louis with the draft, or the portion of the vessel below the water, limited to 9 feet, 6 inches.
The US Department of Agriculture said late Monday that the soyabean harvest was 96 percent complete, compared with 92 percent a week ago and the five-year average of 91 percent. Midwestern states were nearly done, except Ohio and Missouri, which had about 10 percent of their crops left to harvest.
Kentucky and North Carolina still had to harvest a large percentage of their double-cropped soyabeans.
USDA said the corn harvest was 90 percent complete, compared with 80 percent a week ago and the five-year average of 84 percent.
Dry and warm weather hurt the US winter wheat crop, which was rated 57 percent good to excellent, compared with 61 percent a week ago and 78 percent a year ago.
The US Department of Agriculture will update its estimates of US crop sizes on Thursday morning.
Traders continued to watch bird flu because a widespread outbreak could cut consumption of feed made from grains and oilseeds.
Chinese buyers have cancelled at least four contracts to import Indian soyameal on growing fears that bird flu could sharply cut commercial feed demand, regional traders said on Tuesday.
China has culled 6 million birds in an area hit by the country's fourth outbreak in a month.
Chicago Board of Trade soyabean futures were called to open 1/2 to 1 cent per bushel higher on a technical short-covering bounce after the steep slide on Monday, traders said.
CBOT corn was called to open steady to 1/2 cent higher on mild short covering amid oversold technicals.
CBOT wheat was called to open 1 to 2 cents higher with the declining condition of the US winter wheat crop boosting prices.